During the year, Ted Knight received worker's compensation payments totaling $25,000 as a result of an injury he suffered at work. His only other source of income for the year was his wages of $25,000. Which one of the following represents Ted's Net and Taxable Incomes for the year?

A. Net Income $25,000, Taxable Income $25,000.

B. Net Income $30,000, Taxable Income $30,000.

C. Net Income $50,000, Taxable Income $25,000.

D. Net Income $50,000, Taxable Income $45,000.